Govt Hikes Custom Duty on Mobile, TVs to Push ‘Make in India’

The hike in customs duty will also hit brands that are importing electronic components.

The Finance Ministry has raised customs duty on some electronic items, including televisions, mobile phones, projectors, and water heater in order to boost domestic manufacturing.

As per a government notification, customs duty on television sets has been increased to 15 percent from the existing 10 percent. This is an indication that the government is looking to intensify the ‘Make in India’ programme, which so far hasn’t led to anything concrete.

In addition to mobile phones, the duty on monitors and projectors has been doubled to 20 percent, said the notification issued by the Department of Revenue.

For the push button telephones or mobiles, the duty has been raised to 15 percent from 0, while duty on water heaters and hair dressing instruments has been doubled to 20 percent. Customs duty on some other items like electric filament and discharge lamps was also tweaked.

The push for local manufacturing could also be a sign that the government isn’t willing to budge on Apple’s conditions to manufacture in the country, instead asking iPhone buyers to shell out more to buy Apple products.

Also Read: Apple Wants Tax Breaks for Suppliers in India to Make iPhones

This development could benefit domestic brands like Micromax and Lava, among others, who’ve been hit by the ever-increasing Chinese mobile phone market.

Also Read: Micromax, Lava Bow Down to Xiaomi and Lenovo’s Rise in India

However, despite OnePlus, Xiaomi and even Oppo are now manufacturing in India, the revision in customs duty is most likely to hit them in some way. Other than mobilephone manufacturers, even the likes of Intex and Vu, who import their products, will have to tweak their strategy.

(Breathe In, Breathe Out: Are you finding it tough to breathe polluted air? Join hands with FIT to find #PollutionKaSolution. Send in your suggestions to [e-mail] or WhatsApp @ [phone])